Vanguard: New Minimum Monthly Account charge

GeoffTF

boingy said:

BigGirlPants said:

Section62 said:

BigGirlPants said:

I only have a small amount with Vanguard so I'm going to look to transfer out like many people are.

 I have a Life Strategy portfolio so I'm looking where I can get an in specie transfer to the same fund, with minimum ongoing fees.

Has anybody got a suggestion if they are doing exactly the same thing?

I'm in the same position and went with IWeb, mainly based on what was said about them on this forum.

The transfer from Vanguard took a while, but from other's experience that was probably down to Vanguard being busy dealing with other transfers out.

Iwebs zero ISA fees are great, I looked at their Sipps fees, they are high though, more than the new Vanguard ones.

Quarterly charges

SIPP value of £50,000 or less – £22.50

SIPP value of more than £50,000 – £45

It's a while since I looked at iWeb's SIPP charges but I think they charge for inward transfers and also have a bunch of charges relating to the business end of the pension - when you start taking money out. The latter maybe not be an issue if you are planning to transfer it elsewhere before your retire.

That has recently changed. The SIPPs are no longer managed by AJ Bell. They are now managed in house (by part of Scottish Widows IIRC). They have a completely new charging structure, which is the same for the Lloyds, Halifax and Bank of Scotland branded accounts.

Beddie

BigGirlPants said:

I only have a small amount with Vanguard so I'm going to look to transfer out like many people are.

 I have a Life Strategy portfolio so I'm looking where I can get an in specie transfer to the same fund, with minimum ongoing fees.

Has anybody got a suggestion if they are doing exactly the same thing?

I use Prosper - app only, no fees, though very new so not much research on them yet. I've had no issues so far.

It'll be a cash transfer, but won't cost you anything to rebuy the funds.

https://www.prosper.co.uk/products/sipp

jimjames

BigGirlPants said:

Section62 said:

BigGirlPants said:

I only have a small amount with Vanguard so I'm going to look to transfer out like many people are.

 I have a Life Strategy portfolio so I'm looking where I can get an in specie transfer to the same fund, with minimum ongoing fees.

Has anybody got a suggestion if they are doing exactly the same thing?

I'm in the same position and went with IWeb, mainly based on what was said about them on this forum.

The transfer from Vanguard took a while, but from other's experience that was probably down to Vanguard being busy dealing with other transfers out.

Iwebs zero ISA fees are great, I looked at their Sipps fees, they are high though, more than the new Vanguard ones.

I don't believe those fees are higher than Vanguard unless you have a small pot. Mine was £93 a quarter so iWeb would be cheaper. ii are charging £12.99 a month so little cheaper than iWeb. Another iweb benefit is that the fees are taken from the SIPP so that will reduce the actual cost by the amount of tax relief.

Slinky

IanManc said:

jimjames said:

BigGirlPants said:

Section62 said:

BigGirlPants said:

I only have a small amount with Vanguard so I'm going to look to transfer out like many people are.

 I have a Life Strategy portfolio so I'm looking where I can get an in specie transfer to the same fund, with minimum ongoing fees.

Has anybody got a suggestion if they are doing exactly the same thing?

I'm in the same position and went with IWeb, mainly based on what was said about them on this forum.

The transfer from Vanguard took a while, but from other's experience that was probably down to Vanguard being busy dealing with other transfers out.

Iwebs zero ISA fees are great, I looked at their Sipps fees, they are high though, more than the new Vanguard ones.

I don't believe those fees are higher than Vanguard unless you have a small pot. Mine was £93 a quarter so iWeb would be cheaper. ii are charging £12.99 a month so little cheaper than iWeb. Another iweb benefit is that the fees are taken from the SIPP so that will reduce the actual cost by the amount of tax relief.

My Vanguard SIPP fees are taken from the SIPP. You can choose how to pay them.

I've just changed my Vanguard to charge my bank. I'd rather the maximum amount of money was staying invested in my pension.

NoMore

Slinky said:

IanManc said:

jimjames said:

BigGirlPants said:

Section62 said:

BigGirlPants said:

I only have a small amount with Vanguard so I'm going to look to transfer out like many people are.

 I have a Life Strategy portfolio so I'm looking where I can get an in specie transfer to the same fund, with minimum ongoing fees.

Has anybody got a suggestion if they are doing exactly the same thing?

I'm in the same position and went with IWeb, mainly based on what was said about them on this forum.

The transfer from Vanguard took a while, but from other's experience that was probably down to Vanguard being busy dealing with other transfers out.

Iwebs zero ISA fees are great, I looked at their Sipps fees, they are high though, more than the new Vanguard ones.

I don't believe those fees are higher than Vanguard unless you have a small pot. Mine was £93 a quarter so iWeb would be cheaper. ii are charging £12.99 a month so little cheaper than iWeb. Another iweb benefit is that the fees are taken from the SIPP so that will reduce the actual cost by the amount of tax relief.

My Vanguard SIPP fees are taken from the SIPP. You can choose how to pay them.

I've just changed my Vanguard to charge my bank. I'd rather the maximum amount of money was staying invested in my pension.

But you have to pay the fees either way so why pay more ? If fees are £100 from your bank account that would cost you £100, if instead you put £80 into your SIPP, it becomes £100 and covers the fees, saving you £20. Even more if you are a higher rate tax payer. 

Slinky

NoMore said:

Slinky said:

IanManc said:

jimjames said:

BigGirlPants said:

Section62 said:

BigGirlPants said:

I only have a small amount with Vanguard so I'm going to look to transfer out like many people are.

 I have a Life Strategy portfolio so I'm looking where I can get an in specie transfer to the same fund, with minimum ongoing fees.

Has anybody got a suggestion if they are doing exactly the same thing?

I'm in the same position and went with IWeb, mainly based on what was said about them on this forum.

The transfer from Vanguard took a while, but from other's experience that was probably down to Vanguard being busy dealing with other transfers out.

Iwebs zero ISA fees are great, I looked at their Sipps fees, they are high though, more than the new Vanguard ones.

I don't believe those fees are higher than Vanguard unless you have a small pot. Mine was £93 a quarter so iWeb would be cheaper. ii are charging £12.99 a month so little cheaper than iWeb. Another iweb benefit is that the fees are taken from the SIPP so that will reduce the actual cost by the amount of tax relief.

My Vanguard SIPP fees are taken from the SIPP. You can choose how to pay them.

I've just changed my Vanguard to charge my bank. I'd rather the maximum amount of money was staying invested in my pension.

But you have to pay the fees either way so why pay more ? If fees are £100 from your bank account that would cost you £100, if instead you put £80 into your SIPP, it becomes £100 and covers the fees, saving you £20. Even more if you are a higher rate tax payer. 

I'm only able to put in £2880 grossed up to £3600

Section62

NoMore said:

Slinky said:

IanManc said:

jimjames said:

BigGirlPants said:

Section62 said:

BigGirlPants said:

I only have a small amount with Vanguard so I'm going to look to transfer out like many people are.

 I have a Life Strategy portfolio so I'm looking where I can get an in specie transfer to the same fund, with minimum ongoing fees.

Has anybody got a suggestion if they are doing exactly the same thing?

I'm in the same position and went with IWeb, mainly based on what was said about them on this forum.

The transfer from Vanguard took a while, but from other's experience that was probably down to Vanguard being busy dealing with other transfers out.

Iwebs zero ISA fees are great, I looked at their Sipps fees, they are high though, more than the new Vanguard ones.

I don't believe those fees are higher than Vanguard unless you have a small pot. Mine was £93 a quarter so iWeb would be cheaper. ii are charging £12.99 a month so little cheaper than iWeb. Another iweb benefit is that the fees are taken from the SIPP so that will reduce the actual cost by the amount of tax relief.

My Vanguard SIPP fees are taken from the SIPP. You can choose how to pay them.

I've just changed my Vanguard to charge my bank. I'd rather the maximum amount of money was staying invested in my pension.

But you have to pay the fees either way so why pay more ? If fees are £100 from your bank account that would cost you £100, if instead you put £80 into your SIPP, it becomes £100 and covers the fees, saving you £20. Even more if you are a higher rate tax payer. 

But I'd have £100 less in my SIPP (hopefully) growing in value and doing so without me having to worry about the tax implications.

If I try to compensate for the loss of that growth opportunity by putting £100 into a general investment account* then I'll need to keep records and hope I don't get clobbered for CGT when I want to take it out. (*assuming no spare ISA allowance)

I think I'm probably right in saying this one of those 'personal circumstances' things where the best option depends on where you are at.  At least I hope I'm right, otherwise I've been doing it wrong for a long time.

NoMore

The fees have to be paid.

You have the money for the fees in your bank account. Just put 80% of that money in the Pension and you pay the fees from the pension and save yourself 20%. 

Unless your at the limit of pension contributions so you can't add and would be forced to sell within the pension (like slinky, though personally in the situation I would still pay from within Pension), I don't see where this doesn't save you money.

jimjames

IanManc said:

jimjames said:

BigGirlPants said:

Section62 said:

BigGirlPants said:

I only have a small amount with Vanguard so I'm going to look to transfer out like many people are.

 I have a Life Strategy portfolio so I'm looking where I can get an in specie transfer to the same fund, with minimum ongoing fees.

Has anybody got a suggestion if they are doing exactly the same thing?

I'm in the same position and went with IWeb, mainly based on what was said about them on this forum.

The transfer from Vanguard took a while, but from other's experience that was probably down to Vanguard being busy dealing with other transfers out.

Iwebs zero ISA fees are great, I looked at their Sipps fees, they are high though, more than the new Vanguard ones.

I don't believe those fees are higher than Vanguard unless you have a small pot. Mine was £93 a quarter so iWeb would be cheaper. ii are charging £12.99 a month so little cheaper than iWeb. Another iweb benefit is that the fees are taken from the SIPP so that will reduce the actual cost by the amount of tax relief.

My Vanguard SIPP fees are taken from the SIPP. You can choose how to pay them.

So are (were) mine but it's split proportionally across ISA and SIPP. I don't want to lose any money from my ISA as unlike the SIPP it has a limited contribution (I know SIPP is limited too but high enough to not be)
If you have a DD setup with ii then it will be used to take fees rather than being from the SIPP

Section62

NoMore said:

The fees have to be paid.

You have the money for the fees in your bank account. Just put 80% of that money in the Pension and you pay the fees from the pension and save yourself 20%. 

Unless your at the limit of pension contributions so you can't add and would be forced to sell within the pension (like slinky, though personally in the situation I would still pay from within Pension), I don't see where this doesn't save you money.

You still pay £100 whether you pay it from the SIPP or pay it from the bank account.

There's no saving by paying it from the SIPP because the tax relief is still money, the fact it is government money doesn't really make much difference because if you spend it on fees it is still £20 you no longer possess.

Refining my previous post, I think it matters if (like slinky and I) you've hit your personal contribution limit(s) and still have cash sitting around in accounts subject to tax.  I'd guess the reverse is true when you get to drawdown if you have to pay tax on what is coming out of the SIPP, but I've not thought that far ahead (yet), so would leave it up to one of the forum experts to make a more definitive comment.